Reuters reported that shanghai steel futures jumped 1.6% on Monday, snapping a week long fall, following more evidence that China's economy is on the mend
The most briskly traded rebar contract for May delivery on the Shanghai Futures Exchange was up by CNY 55 at CNY 3,550 a tonne by the midday break.
But a trader said "I think the rebar futures overreacted to the PMI data. I'm still not optimistic about the steel market in December. Temperature continues to drop in the northern part and that's not positive for demand."
Manufacturing activity in China quickened for the first time in 13 months in November, according to a survey of factory managers by HSBC, adding to evidence that the world's No. 2 economy is recovering after a seven-quarter slowdown. That backed weekend data that showed the country's official Purchasing Managers' Index at a seven-month high for the same period.
